Westrock Coffee: Telsey Advisory Group Maintains Outperform, Raises PT to $10.

Westrock Coffee: Telsey Advisory Group Maintains Outperform, Raises PT to $10.

Telsey Advisory Group has maintained its Outperform rating on Westrock Coffee Company (WEST) while raising its price target to $10.00 from $8.00. The decision comes following the company's strong second-quarter 2025 results, which highlighted significant growth and operational improvements.

In the second quarter, Westrock reported record-breaking sales, driven by robust customer demand and successful execution across its integrated platform. The company's CEO, Scott Thomas Ford, highlighted the contributions of recent investments, particularly the Conway production facilities. Ford noted that the new single-serve cup plant and the extract and RTD plant in Conway, Arkansas, played a pivotal role in achieving record production, deliveries, and profits.

Despite a net loss of $21.6 million, largely attributed to planned investments in the Conway facility, Westrock's consolidated adjusted EBITDA reached $15.3 million. The Beverage Solutions segment saw a 27.9% year-over-year increase in net sales and a 48.5% increase in adjusted EBITDA. The Sustainable Sourcing & Traceability (SS&T) segment also showed strong growth, with a 60% increase in net sales and an adjusted EBITDA of $3.3 million.

Telsey Advisory Group's decision to maintain an Outperform rating and raise the price target reflects confidence in Westrock's operational resilience and growth prospects. The firm cited strong first-half performance and the company's ability to navigate macroeconomic challenges, including tariffs and inflation.

However, the firm also noted potential headwinds, including higher coffee prices and new tariffs, which may impact Westrock's financial performance in the future. Telsey Advisory Group expects Westrock to continue balancing sales growth and profitability, supported by price increases and cost management initiatives.

References:
[1] https://seekingalpha.com/news/4482338-westrock-coffee-affirms-full-year-2025-guidance-as-conway-production-ramps-and-adjusted
[2] https://www.ainvest.com/news/brc-price-target-cut-2-50-telsey-advisory-2508/